Living with low for long

• Autores: Charles Bean
• Localización: Economic journal, ISSN 0013-0133, Vol. 126, Nº 592, 2016, págs. 507-522
• Idioma: inglés
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• Resumen

  • I review the causes and some of the consequences of the recent decline in global real interest rates. Causes include: a higher propensity to save associated with a rise in the population share of the high-saving middle-aged; a weaker propensity to invest since the 2007-8 financial crisis; and portfolio shifts towards safer assets. Consequences include: an increased likelihood that policy rates are constrained by the zero lower bound, necessitating greater reliance on unconventional monetary policies; and an increased risk of financial instability as investors seek to generate higher yields